Safestay PLC Trading statement and notice of results (0510W)
February 06 2017 - 1:00AM
UK Regulatory
TIDMSSTY
RNS Number : 0510W
Safestay PLC
06 February 2017
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR").
6 February 2017
Safestay plc
("Safestay", the "Company" or the "Group")
Trading Update and Notice of Results
Safestay (AIM: SSTY), the owner and operator of a new brand of
contemporary hostel announces the following trading update for the
12 months to 31 December 2016.
The Group expects to report underlying EBITDA of GBP2.2m (2015:
0.6m) and revenues of GBP7.4m (2015: 4.0m).
In practice, 2016 proved to be a difficult year for the
hospitality market as visitor numbers to London, in particular,
were affected by the events in Paris and wider political
instability which resulted in a challenging market environment.
This exacerbated the slow build-up in average bed rate ("ABR") and
occupancy in Holland Park which impacted the Group's trading
performance and while substantially ahead of last year it is
slightly below market expectations for 2016.
That said, Safestay is a young growing business and its growth
outlook remains unchanged for 2017. Advance bookings, for which the
company has received deposits look strong compared to this time
last year.
2017 is expected to be an important year for Safestay following
a year focused on consolidating the newer hostels into the
portfolio. The Company will continue to invest in the portfolio.
Having received the planning consent for the extension of the
Elephant & Castle site which will provide a further 80 beds, we
are working with the professional team with preparations for its
construction. Together, with a GBP0.2m refurbishment programme in
Edinburgh which is expected to increase ABR for this site during
the all-important summer season.
In February 2017, the Group welcomed Nuno Sacramento as its new
Chief Operating Officer.
Larry Lipman, Group Chairman, added, "2017 forward bookings
provide a good outlook for the business and we are looking
carefully at options to release capital from our property portfolio
to support our ability to expand the number of Safestay hostels.
Our brand proposition within our market continues to grow and
strengthen and I believe that we are well set to have a successful
year."
The Company will announce its audited final results for the 12
months to 31 December 2016 on 10 April 2017.
- ENDS -
Enquiries
Safestay Tel: 020 8815 1600
Larry Lipman, Chairman
Novella Tel: 020 3151 7008
Tim Robertson
Toby Andrews
For more information visit: www.safestay.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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